This engineering enterprise of Hattar NWFP has been able to maintain rising trend in sales. During the year under review the company more than double its revenue which was obtained from fabrication and maintenance services.
The company has been able to obtain large orders which would ensure even higher outcome in the coming months. Higher revenue projections are even more feasible as the business environment in the oil and gas exploration sector is surely improving.
With the expertise and experience of last 15 years as well as the technical collaboration with world class operators in this filed, the company has excellent linkages to get business and accomplish successfully.
However, despite highest sales, the company could only make breakeven with small pre-tax loss. The company's accumulated deficit has impaired its shareholders' equity. It carries large receivables which have locked-in substantial liquidity.
The directors reported in Oct. 2003 that the management is still pursuing a civil case against OGDCL for the recovery of Rs 4.005 million which was pending before the Honourable Civil Court Islamabad for arguments.
During the year under review its legal and professional charges shot up to Rs 0.552 million from Rs 0.295 million.
ADOS Pakistan Limited was incorporated in Pakistan under the Companies Ordinance, 1984 on March 5, 1989. Its registered office is located at House No 88, Khayban-e-Iqbal, F8/2 Islamabad. Its shares are quoted on the stock exchanges in Pakistan.
The principal activity of the company is manufacturing, fabrication and refurbishment and parts used in the oil and gas industry.
The incorporation of the company can be termed as the first integrated state-of-the-art engineering facility with a primary focus on indigenous manufacturing and repair of equipment and machinery of oil and gas exploration, drilling, production and procession.
Its expatriate consultants, engineers, machinists, fabricators and welders form a solid core of basic expertise which along with international technical support and licensing agreement with world's most reputed manufactures has enabled ADOS Limited to manufacture and repair a wide range of oil field equipment at the topmost international standards.
Its factory is located at Phase III Hattar Industrial Estate NWFP. Due to the area specific income tax exemption the company has availed the exemption for a period of eight years from the commencement of its commercial ie January 01, 1994. This exemption expired on December 31, 2001.
During the year under review, the company registered sales in the sum of Rs 66.85 million as compared to Rs 29.84 million posted in the preceding year, sales came from fabrication and maintenance services and registered growth at 124.03% over the preceding year's figure. This is impressive growth as with the quality and standard of work the company more than doubled its sales. Furthermore the track record of performance enabled the company to book orders by more than Rs 200 million for the forthcoming year. Its repair and refurbishment segments obtained new long term contracts from major oil & gas drilling contractors and operators.
The directors foresee, "Insha Allah with the blessings of Allah, the company would set new turnover records during the next financial year."
The turnover projection for new record seems to be realistic. The company can manufacture, machine, fabricate, or repair a single component to ensure unhindered continuation of oilfield operators.
On the other hand the company take on a total project responsibility providing complete package comprising tubular, completion, subsurface safety system, well heads, X-Mas tree, choke manifold, gas conditioning, sulphur recovery. LPG extraction and surface facilities.
All of the above work is done under the following licensing and technical collaboration agreements.
Drilling Production and well heads: Equipment are manufactured refurbished and repaired under licence and Technical Collaboration with Cooper Oil Tool, USA.
Rotary Drilling Equipment is manufactured as per procedures and standards specified by API SOC-7.
THREADING OIL COUNTRY TUBULARS:
(a) API Threads - are cut (done) as per procedures and standards specified by API Spec 7 and Spec 5 CT.
(b) Two Step Premium Threads are out under license from Enerpro International Inc USA.
-- Seismic & Water Well Drilling Rigs are manufactured and repaired under license from Ardco Industries Inc. USA.
Coded Vessels are manufactured and refurbished under license from Opsco Industries Limited Canada.
-- Gas conditioning sulphur Recovery & LPG Extracting Units are manufactured under license and technical collaboration with Ortoff Engineering Limited USA.
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Performance Statistics (Million Rupees)
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30 June 2003 2002
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Share Capital-Paid-up: 65.83 65.83
Accumulated (Loss): (14.92) (15.11)
Shareholders Equity: 50.91 50.72
Sponsors Loan: 1.01 2.42
Deferred Liabilities-Gratuity: 1.02 0.65
Current Liabilities: 46.69 16.49
Fixed Capital Expenditure: 42.21 43.14
Deferred Tax: 0.39 -
Current Assets: 57.03 27.14
Total Assets: 99.63 70.28
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Sales, Profit & Pay Out
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Sales: 66.85 29.84
Gross Profit: 9.47 8.77
Operating Profit/(Loss): (1.32) 3.48
Other Income: 1.17 2.28
Financial (Charges): (0.68) (0.46)
(Depreciation): (4.79) (4.87)
Profit/(Loss) Before Taxation: (0.83) 5.03
Profit After Taxation: 0.19 3.99
(Dividend) Cash (2000:@ 5%): - (3.29)
Earnings Per Share (Rs): 0.03 0.72
Share Price (Rs) Dated 18.03.2004: 10.70 -
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Financial Ratios
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Price/Earning Ratio: 356.67 -
Book Value Per Share: 7.73 7.70
Price/Book Value Ratio: 1.38 -
Debt/Equity Ratio: 0:100 0:100
Current Ratio: 1.22 1.64
Asset Turn Over Ratio: 0.67 0.42
Days Receivables: 263 109
Days Inventory: 21 55
Gross Profit Margin (%): 14.17 29.39
Net Profit Margin (%): 0.28 13.37
R.O.A. (%): 0.02 5.68
R.O.C.E. (%): 0.36 7.42
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PLANT CAPACITY: "The plant capacity cannot be determined-utilisation of plant capacity depends upon total market demand and market share held."
COMPANY INFORMATION: Chief Executive: Zia Akbar Ansari; Director: Mrs Shoobarana Zia; Company Secretary: Miss Sabina Ansari; Chief Financial Officer: Ali Imran Haider Bokhari; Registered Office & Share Department: House No 88, Khayabane Iqbal, F 8/2 Islamabad; Factory: Hattar Industrial Estate, NWFP.
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